The new Italian Code for
electronic communications: a
technologically neutral solution
Fabrizio Savi (Telecom Italia)
NAIROBI MAY 2005
THE ITALIAN REGULATORY FRAMEWORK IN THE
ELECTRONIC COMMUNICATIONS SECTOR
• THE ITALIAN CODE FOR POST, POST BANKING ACTIVITIES
AND TELECOMMUNICATIONS WAS ADOPTED IN 1973
• SINCE THEN, THE TWO MAJOR COMMUNITY REFORMS OF
1990 AND 1998 WERE IMPLEMENTED IN THE ITALIAN
LEGISLATION, WITH “AD HOC” MEASURES
• WITH THE 1999 REVIEW “PACKAGE” THERE WAS AN
EXCELLENT CHANCE TO REVISE THE WHOLE LEGISLATION
FOLLOWING RATIONAL CRITERIA
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THE “OLD” CODE
1. GENERAL RULES
2. POSTAL SERVICES
3. POST BANKING SERVICES
4. TELECOMMUNICATIONS SERVICES – BOTH PUBLIC AND
PRIVATE - INCLUDING
• VOICE TELEPHONY SERVICE
• TELEGRAPHIC SERVICES
• RADIOELECTRIC SERVICES
• SUBMARINE CABLES
THE LAW n. 166/2002
• THE ITALIAN GOVERNMENT HAD THE MANDATE TO
IMPLEMENT – BY AUGUST 2003 - DIRECTIVES 2002/19/CE,
2002/20/CE, 2002/21/CE AND 2002/22/CE, THROUGH THE
ADOPTION OF A NEW ELECTRONIC COMMUNICATIONS CODE.
• THE BASIC PRINCIPLES TO BE FOLLOWED ARE:
- MARKET ACCESS BASED ON OBJECTIVE, TRANSPARENT, NON DISCRIMINATORY AND
PROPORTIONAL CRITERIA
- EFFICIENT USAGE OF RADIO SPECTRUM, ALSO THROUGH FREQUENCY TRADING
- DEFINITION OF TIMELY, NON DISCRIMINATORY AND TRANSPARENT PROCEDURES
FOR THE INSTALLATION OF INFRASTRUCTURES
- SIMPLIFICATION OF ADMINISTRATIVE PROCEDURES
- INTEROPERABILITY OF DIGITAL SERVICES
- THE RESPECT OF THE ESTABLISHED ROLE AND DUTIES OF THE NRA AND OF THE
MINISTRY OF COMMUNICATIONS
- FLEXIBLE REGULATION OF ACCESS AND INTERCONNECTION
- SAFEGUARD OF THE UNIVERSAL SERVICE,
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THE NEW CODE OF ELECTRONIC COMMUNICATIONS
• THE NEW CODE, IN SECTION I AND II, ESTABLISHES THE
GENERAL PRINCIPLES OF THE REGULATORY FRAMEWORK
AND THE REGULATION OF THE ELECTRONIC
COMMUNICATIONS NETWORKS AND SERVICES OFFERED TO
THE PUBLIC; THIS PART IMPLEMENTS THE EUROPEAN
DIRECTIVES
• THE OTHER SECTIONS III, IV AND V WILL ADDRESS “PRIVATE”
NETWORKS AND SERVICES, RADIOLECTRIC SERVICES AND
SUBMARINE CABLES
• THE NEW CODE IS “EXHAUSTIVE” AND THE PRACTICAL
APPLICATION OF ITS PROVISIONS HAS NO NEED OF
FURTHER REGULATORY MEASURES
• POSTAL AND POST BANKING SERVICES ARE NOT INCLUDED
IN THE NEW CODE
THE APPROVAL PROCEDURE
• IN DECEMBER 2002 THE GENERAL REGULATORY CRITERIA
FOR THE NEW CODE WERE SUBMITTED TO A PUBLIC
CONSULTATION PROCESS
• A HIGH LEVEL CONSULTATIVE GROUP WAS ESTABLISHED,
WITH REPRESENTATIVES OF THE OPERATORS
• TAKING INTO ACCOUNT THE RESULTS OF THE
CONSULTATION, THE TEXT WAS DRAFTED AND DISCUSSED
WITH ALL THE INSTITUTIONAL INTERESTED PARTIES
• THE DRAFT TEXT WAS ADOPTED WITH A PRELIMINARY
DECISION OF THE COUNCIL OF MINISTERS (5.23.2003)
• THE TEXT HAS BEEN EVALUATED BY THE RELEVANT
PARLIAMENT COMMISSIONS AND THE “STATO/REGIONI”
CONFERENCE
• THE DECREE WAS APPROVED BY THE PRESIDENT OF THE
REPUBLIC, SUBSTANTIALLY RESPECTING THE EUROPEAN
DEADLINE
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HIGHLIGHTS OF THE NEW CODE
SECTION I – GENERAL PRINCIPLES
• THE RIGHTS OF FREEDOM IN THE USE OF ELECTRONIC
COMMUNICATIONS AND OF FREE ECONOMIC INITIATIVE IN A
COMPETITIVE FRAMEWORK ARE FORMALLY RECOGNISED
(ART. 3)
• THE GENERAL OBJECTIVES OF THE REGULATION ARE
DEFINED IN ART. 4; AN IMPORTANT AND INNOVATIVE
REFERENCE IS MADE TO THE PROMOTION OF COMPETITIVE
BROADBAND NETWORKS AND SERVICES AND TO THE
DEVELOPMENT OF CONVERGENCE AND OPEN STANDARDS,
IN LINE WITH THE EUROPEAN POLICY
HIGHLIGHTS OF THE NEW CODE
SECTION I – GENERAL PRINCIPLES
• THE PRINCIPLE OF COOPERATION BETWEEN THE CENTRAL
GOVERNMENT, THE REGIONS AND THE LOCAL INSTITUTIONS
IS STATED IN ART. 5
• THE REGIONS ARE EMPOWERED TO PROMOTE THE
AVAILABILITY OF BROADBAND NETWORKS AND SERVICES IN
SPECIFIC AREAS AND TO IDENTIFY INITIATIVES TO SUPPORT
LOW INCOME, OLD AND DISABLED PEOPLE
• ALL INITIATIVES MUST BE BASED ON TRANSPARENCY,
PROPORTIONALITY AND NON DISCRIMINATION, RESPECTING
THE PRINCIPLES OF FAIR COMPETITION
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HIGHLIGHTS OF THE NEW CODE
SECTION I – GENERAL PRINCIPLES
• THE RESPECTIVE ROLES AND DUTIES OF THE MINISTRY AND
OF THE NRA (AGCOM) ARE DEFINED IN ART. 7, QUOTING THE
RELEVANT LEGISLATIVE MEASURES; THE DETAILS
REGARDING THE RESPECTIVE ROLES AND DUTIES WILL BE
NOTIFIED TO THE EUROPEAN COMMISSION AND
ADEQUATELY PUBLISHED
• ART. 8 DEFINES THE PROCEDURE FOR COOPERATION
BETWEEN THE MINISTRY, THE NRA AND THE COMPETITION
AUTHORITY, WHICH WILL BE TIMELY ADOPTED AND
PUBLISHED.
HIGHLIGHTS OF THE NEW CODE
SECTION I – GENERAL PRINCIPLES
• AMONG THE OBJECTIVES AND PRINCIPLES OF THE
REGULATION (ART. 13), IT IS IMPORTANT TO UNDERLINE THE
PROMOTION OF EFFICIENT AND SUSTAINABLE INVESTMENTS
IN BROADBAND NETWORKS AND SERVICES AND THE
ADOPTION OF A FLEXIBLE APPROACH TO ACCESS AND
INTERCONNECTION
• IN LINE WITH THE PRINCIPLE OF SIMPLIFICATION OF
ADMINISTRATIVE PROCEDURES, ANY REGULATORY
MEASURE SHALL BE EVALUATED FOLLOWING THE CRITERIA
OF THE “IMPACT OF THE REGULATION’S COST”
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HIGHLIGHTS OF THE NEW CODE
SECTION I – GENERAL PRINCIPLES
• COHERENTLY WITH THE PRINCIPLE OF AN EFFICIENT
MANAGEMENT OF RADIO SPECTRUM (ART. 14) FREQUENCY
TRADING IS ALLOWED ON A COMMERCIAL BASIS AND
SAFEGUARDING THE FAIR COMPETITION PRINCIPLE
• THE TRADING OF SPECIFIC FREQUENCIES (ASSIGNED TO A
LIMITED NUMBER OF OPERATORS) IS ALLOWED BETWEEN
AUTHORIZED SUBJECTS OFFERING NETWORKS AND
SERVICES BASED ON THE SAME TECHNOLOGY (GSM, UMTS,
WLL)
HIGHLIGHTS OF THE NEW CODE
SECTION II – PUBLIC ELECTRONIC COMMUNICATIONS
NETWORKS AND SERVICES
• ART. 19 DEFINES THE TIMING OF THE MARKET ANALYSIS
PROCEDURE, FIXING THE FIRST TEST OF THE RELEVANT
MARKETS IN FOUR MONTHS TIME SINCE THE APPROVAL OF
THE CODE; THE MARKET ANALYSIS IS REPLICATED
FOLLOWING THE COMMISSION’S UPDATES OF THE
RECCOMENDATION OR, ANYWAY, EVERY 18 MONTHS
• FOLLOWING THE APPROACH OF THE COMMISSION’S
GUIDELINES AND RECCOMENDATION, THE MARKET
ANALYSIS SHOULD TAKE INTO ACCOUNT THE DYNAMICS OF
THE MARKET ALSO IN A FORWARD LOOKING WAY
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HIGHLIGHTS OF THE NEW CODE
SECTION II – PUBLIC ELECTRONIC COMMUNICATIONS
NETWORKS AND SERVICES
• THE AUTHORIZATION MECHANISM (ART. 25) IS DIRECTLY
INSPIRED TO THE PRINCIPLE OF SIMPLIFICATION OF
ADMINISTRATIVE PROCEDURES; FOR THE START UP OF THE
ACTIVITIES A SIMPLE NOTIFICATION TO THE MINISTRY IS
REQUIRED
• IN THE CASE OF REQUESTS OF INDIVIDUAL RIGHTS ON
FREQUENCIES AND NUMBERS, THE TIMING STATED IN THE
DIRECTIVE 2002/20/CE IS APPLIED
• THE AUTHORIZATION LASTS FOR NO MORE THAN TWENTY
YEARS AND ITS TRANSFER TO ANOTHER OPERATOR IS
SUBJECT TO A NOTIFICATION TO THE MINISTRY
HIGHLIGHTS OF THE NEW CODE
SECTION II – PUBLIC ELECTRONIC COMMUNICATIONS
NETWORKS AND SERVICES
• THE EXISTING INDIVIDUAL LICENSES AND GENERAL
AUTHORIZATIONS ARE “AUTOMATICALLY” CONVERTED IN
THE AUTHORIZATION INTRODUCED BY THE NEW
REGULATORY FRAMEWORK (ART. 38)
• TRIALS OF ELECTRONIC COMMUNICATIONS NETWORKS AND
SERVICES IS REGULATED BY THE SAME SIMPLIFIED
AUTHORIZATION PROCEDURE (ART. 39)
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HIGHLIGHTS OF THE NEW CODE
SECTION II – PUBLIC ELECTRONIC COMMUNICATIONS
NETWORKS AND SERVICES
• DUE TO THE EFFECTIVE COMPETITION ON THE MARKET OF
TELEPHONE DIRECTORY ENQUIRY SERVICES, THE DESIGNATION
OF AN UNDERTAKING CHARGED WITH THE RELEVANT UNIVERSAL
SERVICE OBLIGATION IS NOT ENVISAGED; THE MINISTRY
MONITORS THE MARKET AND, IF IT IS THE CASE, ADOPTS THE
NECESSARY ADJUSTMENTS (ART. 55)
• IN LINE WITH THE CURRENT LEGISLATION, THE UNIVERSAL
SERVICE NET COST IS FINANCED THROUGH A SHARING
MECHANISM – UNIVERSAL SERVICE FUND (ART. 63)
• THE MINISTRY, IN LINE WITH THE EUROPEAN ORIENTATIONS AND
TAKING INTO ACCOUNT THE DEVELOPMENT OF THE COMPETITIVE
MARKET, CAN EVALUATE THE NEED OF DESIGNATING
UNDERTAKINGS FOR SPECIFIC OBLIGATIONS (ART. 65). FOR THE
FIRST TIME, THIS ACTIVITY WILL BE CONDUCTED IN THE FIRST
TWELVE MONTHS SINCE THE ADOPTION OF THE CODE AND THEN
EVERY TWO YEARS
HIGHLIGHTS OF THE NEW CODE
SECTION II – PUBLIC ELECTRONIC
COMMUNICATIONS NETWORKS AND SERVICES
• FOLLOWING THE PRINCIPLE EXPRESSED IN CONSIDERING 26
OF THE DIRECTIVE 2002/22/CE, THE NRA CAN IMPOSE PRICE
CONTROLS ON RETAIL SERVICES WHEN THE RELEVANT
WHOLESALE MEASURES OR MEASURES REGARDING
CARRIER SELECTION OR PRE-SELECTION DO NOT ENSURE
THE ACHIEVEMENT OF THE OBJECTIVE OF EFFECTIVE
COMPETITION AND PUBLIC INTEREST
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HIGHLIGHTS OF THE NEW CODE
SECTION II – PUBLIC ELECTRONIC COMMUNICATIONS
NETWORKS AND SERVICES
• ARTICLES 88-93 REGULATE IN DETAIL, QUOTING THE
RELEVANT NATIONAL LEGISLATION, THE CASES OF
EXPROPRIATION FOR PUBLIC UTILITY, LEGAL LIMITATIONS
TO OWNERSHIP, EASEMENT, INTERFERENCES WITH
ELECTRIC LINES. IN PARTICULAR, WITH REFERENCE TO THE
RIGHTS OF WAY, THE REGULATION IS EXTREMELY
SIMPLIFIED AND PROMOTES THE DEVELOPMENT OF BOTH
FIXED AND MOBILE INFRASTRUCTURES
• ADMINISTRATIVE PENALTIES ARE FIXED IN THE CASE OF
INFRINGEMENT OF THE MEASURES STATED IN THE CODE
(ART. 96)
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